Vancouver, British Columbia–(Newsfile Corp. – October 31, 2022) – Silverton Metals Corp. (TSXV: SVTN) (OTCQB: SVTNF) (“Silverton” or the “Company”) is pleased to announce that the Board of Directors of the Company has approved the change of name of the Company to “Lodestar Battery Metals Corp.” (the “Name Change”). The name change better reflects the Company’s focus on exploration and development of lithium and silver projects.
Shareholders of the Company will not be required to exchange their existing share certificates for new certificates bearing the new name of the Company. The change of name does not affect the shareholding structure of the Company nor the rights of the shareholders of the Company. No action is required from existing shareholders of the Company. The name change is subject to acceptance by the TSX Venture Exchange.
Board and management changes
The company also announces that it has reappointed Killian Ruby as CFO and director to replace outgoing CFO Kyle Appleby and director Gunther Roehlig. Mr. Ruby is the former Chief Financial Officer of the Company and has extensive experience working with the Company. Mr. Ruby is President and Chief Executive Officer of Malaspina Consultants Inc.
“On behalf of the Board of Directors and management, I would like to thank Mr. Roehlig for his support of Silverton,” said Lowell Kamin, CEO of Silverton. “I am delighted that Silverton is entering this next chapter and expanding our scope to include lithium exploration and development. Mr. Ruby’s dynamic financial experience and prior knowledge of the company gives me confidence in our ability to execute our new strategy as Lodestar Battery Metals Corp.”
Beginning of resource estimation on the Peñasco Quemado property
The Company is pleased to announce that it has engaged Micon International Limited to prepare a current mineral resource estimate on the silver-focused Peñasco Quemado property.
A 2006 drilling program described a historical measured and indicated resource of 2.57 million tonnes grading 117 g/t Ag for a silver resource of 9.63 million ounces (see “Historical Mineral Estimate of Peñasco Quemado” below). Silver mineralization is associated with manganese oxides in a shallow west-dipping zone near the surface of polymictic conglomerate in the northern part of the deposit and with quartz and manganese oxides stockwork in a rhyolite dome in the southern part of the deposit. Mineralization has been traced over a strike length of 2km and drilling to date has been relatively shallow, less than 100m deep, mainly concentrated on silver conglomerate.
The Company also announces that due to the prospect of its existing silver-focused properties, Peñasco Quemada and La Frazada, and its lithium-focused Peny property, it has chosen to abandon the Pluto property. This will allow the Company to focus its financial resources on its principal silver and lithium properties.
Historical Mineral Estimate of Peñasco Quemado
** Silvermex Resources Limited stated in a technical report entitled “Updated NI 43-101 Technical Report and Resource Estimate for the Peñasco Quemado Silver Property” dated March 9, 2007 (filed on SEDAR March 16, 2007), prepared by William J. Lewis and James A. McCrea, historical mineral estimate above. The historical mineral estimate used ‘Measured Mineral Resources’, ‘Indicated Mineral Resources’ and ‘Inferred Mineral Resources’. Although these categories are set out in NI 43-101 and the CIM, the CIM has revised its mineral resource definitions since the completion of the technical report that supports this resource estimate. Accordingly, Silverton considers these historical estimates to be reliable and relevant as they represent a target for Silverton’s exploration work. The database for the historical resource estimate included 24 reverse circulation holes from a 1981/82 program, 17 reverse circulation holes from a 2006 program and 8 diamond drill holes from a drill program of 2006. Assay data was available for all 49 drill holes and 12 trenches. The mineral resource estimate used a kriging estimation method to establish mineralized zones with a cut-off grade of 30 g/t Ag and a capped assay of 700 g/t Ag. The resource blocks were estimated by Ordinary Kriging with samples within 25 meters classified as a Measured Mineral Resource, within 47 meters classified as an Indicated Mineral Resource and within 70 meters classified as an Inferred Mineral Resource. As required by NI 43-101, the CIM definitions (August 2004) were used to classify the mineral resources, with the classification of each kriged mineralized block dependent on the number of penetrating holes. An in situ boulder density of 2.50 t/cubic meter was assigned to the mineralized boulders. The qualified person has not done sufficient work to classify the historical estimate as a current mineral resource. Accordingly, Silverton treats these historical estimates as relevant but not current mineral resources.
About Silverton Metals Corp.
Silverton Metals Corp. is a Canadian company focused on the exploration and development of quality silver projects. The company owns a 100% interest in three significant silver assets in Mexico: Pluton in Durango, Peñasco Quemado in Sonora and La Frazada in Nayarit. Silverton’s management and Board of Directors have experience in identifying and evaluating acquisition targets and exploration prospects. The Company intends to build a strong portfolio of silver and lithium projects to drive future growth through successful exploration and from later-stage projects with production potential. To achieve this growth, Silverton’s business plan calls for an aggressive combination of development of its existing properties, acquisitions and partnerships.
Silverton Metals Corp.
Lowell Kamin, CEO (416) 272-1241
Qualified Person: Luke van der Meer, P.Geo is an Independent Consultant to the Company and an Independent Qualified Person as defined by National Instrument 43-101 Standards for Disclosure of Mineral Projects, and has reviewed and approved the scientific information and techniques in this press release.
The information in this press release contains forward-looking statements based on assumptions as of the date of this press release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Silverton cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of important factors, many of which are beyond Silverton’s control. These factors include, among others, the risks and uncertainties associated with Silverton’s limited operating history and the need to comply with environmental and governmental regulations. Therefore, actual and future events, conditions and results may differ materially from the estimates.
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